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Can i get qualified for debt consolidation even if i have no equity?

i will not get approved for a loan, my parents wont co sign a loan with me, i have no equity tho, i live with my parents, i dont have a car...is debt consolidation even an option for me? im in BIG trouble with my credit card company, they have already taken my cards to a collection agency, which is who i am dealing with now, and i have til monday to come up with 21,000...or a plan..which would be a loan, but thats not happening, debt consolidation, or bankruptcy...whats a girl to do?? i am sooo screwed!!

i have noooo idea what im supposed to do! who im supposed to call..what im supposed to say!! and im in canada, so i dont know how different it is here, compared to where most of you are. i have no one i can even talk to about this. i am freaking out here!


i've been told, oh dont worry it takes at least 6 months for them to actually do something..welllllll the thing is..it HAS been 6 months, and this is them doing something! i need help, i need adive! please!!!

 
Anonymous

Asked by Anonymous at 1:26 AM on Mar. 5, 2011 in Money & Work

This question is closed.
Answers (8)
  • The Dept of Justice has put together a database of credit counseling/debt consolidation orgs with the DOJ stamp of approval-  http://www.justice.gov/ust/eo/bapcpa/ccde/

    rkoloms

    Answer by rkoloms at 11:39 AM on Mar. 5, 2011

  • You said so yourself you can't qualify for the loan- and that's what debt consolidation is.

    Credit card companies typically take 6 months to a year before they get around to suing you. To be fair, they can technically sue you the moment you are late- but 99% of the time they won't.

    To me, whoever said you need to pay the bill by Monday- sounds like they are pulling your leg. The absolute worst thing that can happen is you don't pay the bill on Monday and so the take you to court. At court you can work out a payment arrangement. They might garnish your wages and if you had any assets (sounds like you don't) they might attach liens to them. If they garnish your wages and you can't afford it- file for bankruptcy and be done with it.

    Continue:
    Erica_Smerica

    Answer by Erica_Smerica at 2:44 PM on Mar. 5, 2011

  • Now if they are pulling your leg- which it sounds like they are- then what do you do? Get on a written budget with food, utilities, rent/mortgage, fuel, and insurance at the top of the list. Think basic living expenses- not eating out, not cable or cell phones, the actual things that you'd need to physically survive.

    Allocate every dollar of your expected income with necessities at the top of the list, debt in the middle, and luxuries at the bottom. Then when you get paid go down that list and pay things in the way it is written out. If you are married make sure your SO agrees to the budget with you.

    You can try to get your account out of collections or you can save up money. Once you have say 50 cents on the dollar call them and try to settle the debt. Get it in writing, no electronic access to your checking account. Send the payment with a cashiers check and send it certified mail, return receipt requested.

    Continue:
    Erica_Smerica

    Answer by Erica_Smerica at 2:47 PM on Mar. 5, 2011

  • While your working on cutting expenses- also start looking around for stuff that you can sell. Start thinking about extra jobs to bring in cash.

    I would highly recommend borrowing the book Total Money Makeover, by Dave Ramsey from your local library. That is a great place to start when it comes to getting control of your finances and paying off debt.

    Remember that your first priority is to take care of your family. Everything else can wait. Worse case scenario, they sue you and you file for bankruptcy. Look up your state law to see what they can and cannot legally do when they try and collect from you.

    Good luck & I hope things get better for you soon.
    *Hugs*
    Erica_Smerica

    Answer by Erica_Smerica at 2:50 PM on Mar. 5, 2011

  • ETA: This is really if you live in America- but I imagine Canada has similar practices in place. Look them up to see how it works. I still think you can get through this.
    Erica_Smerica

    Answer by Erica_Smerica at 2:55 PM on Mar. 5, 2011

  • Check this out, i have never been sued but my credit is not that great, im working on my debt. This may be a help to you, the counselors will you negotiate terms, you also have lawyers to make sure the creditors or agencies arent over stepping their boundaries.

    They use all kins of scare tactics, dont let them harass you. https://www.jmgnetworth.com/mywealth
    IraqiVetWife

    Answer by IraqiVetWife at 6:17 PM on Mar. 5, 2011

  • Yes, Call Consumer credit counseling. Never pay for credit counseling or consolidation. You don't need a loan.
    itsmesteph11

    Answer by itsmesteph11 at 12:15 PM on Mar. 7, 2011

  • All the collections company can do it is send it back to the credit card company and see what they do about it. The collection agency can't sue you or anything like that.
    matthewscandi

    Answer by matthewscandi at 11:27 AM on Mar. 5, 2011